Bike sale The bicycle shop in Exercise 56 will be offering 2 specially priced children’s models at a sidewalk sale. The basic model will sell for $120 and the deluxe model for $150. Past experience...

Bike sale The bicycle shop in Exercise 56 will be offering 2 specially priced children’s models at a sidewalk sale. The basic model will sell for $120 and the deluxe model for $150. Past experience indicates that sales of the basic model will have a mean of 5.4 bikes with a standard deviation of 1.2, and sales of the deluxe model will have a mean of 3.2 bikes with a standard deviation of 0.8 bikes. The cost of setting up for the sidewalk sale is $200.

a) Define random variables and use them to express the bicycle shop’s net income.

 b) What’s the mean of the net income?

c) What’s the standard deviation of the net income?

d) Do you need to make any assumptions in calculating the mean? How about the standard deviation?